Supported by a team of 900 agents, ERA Vietnam
has taken an estimated 20% share of Vietnam's project marketing sector within
two years of its founding

ERA Vietnam's turnover grew 75% and the
franchise became profitable in its second year of operations (FY2019[1])

Provides APAC Realty with access to Vietnam's
thriving real estate market and fast-growing middle class of 33 million in 2019

APAC Realty ventured into four major Southeast
Asian real estate markets over the past 12 months: Indonesia, Thailand,
Malaysia and Vietnam, as part of the Group's strategy to grow its business in some
of the highest growth real estate markets in Asia

SINGAPORE - Media OutReach - 26
February 2020 - APAC
Realty Limited ("APAC Realty", the "Company" or together with its
subsidiaries, the "Group"), a leading real estate services provider which
operates a market-leading real estate brokerage in Singapore under the ERA
brand, announced the acquisition of a 38% interest in ERA Vietnam for S$1.5
million, providing the Group with access to Vietnam's vibrant real estate
market.

The Transaction

APAC
Realty will acquire 304,000 shares or 38% of Eurocapital Joint Stock Company
("Eurocapital") from Terra Partners Vietnam Joint Stock Company and KTP &
Partners Company Limited for a total nominal consideration of S$100.
Eurocapital was granted the exclusive franchise rights for Vietnam by APAC
Realty under a 25-year ERA Master Franchise Agreement for Vietnam from 12 May
2017.

In
addition, APAC Realty will subscribe for 1,225,800 new shares in ERA Vietnam Realty
Limited Company ("ERA Vietnam"), representing 38% of the enlarged issued share
capital for a consideration of S$1,499,900.

The
total consideration of S$1.5 million will be funded using internal cashflows. Upon
completion of the transaction, Eurocapital and ERA Vietnam will become
associates of APAC Realty.

"Our
entry into Vietnam is another testament to the success of the ERA franchise
business model. Our unique franchise model allows the Group to establish the
ERA brand name in new markets through a cost-efficient platform. Having worked
closely with our franchisees to build a strong reputation for quality service
and trusted advice, and a track record of success through an expert local team,
we would assess if the franchise is ripe for the next phase -- an investment by
the Group," said Mr. Jack Chua, Chairman and Chief Executive Officer of APAC
Realty.

Established
in 2017, ERA Vietnam is led by its Chief Executive Officer, Mr. Tuan Pham, who
comes with over 15 years of experience in real estate industry and has helmed sales
& marketing functions for several reputable developers in Vietnam. The CEO
is supported by a strong and capable management team with an average of 12
years of experience in real estate and investment.

ERA
Vietnam has expanded rapidly over the past two years to take an estimated 20%
share of Vietnam's growing project marketing segment and rank in the top 10
real estate agencies in the country. This was made possible through the
dedication and commitment of approximately 900 ERA salespersons[2] in Ho Chi Minh City.

Following
its success in marketing and closing 40 key projects for leading developers in
2019, ERA Vietnam has to-date, been appointed as the marketing agency for 20 key
project marketing launches in 2020. The developers of these quality projects include
leading Singapore names such as Guocoland, Keppel Land, and Mapletree, as well
as leading local and international developers such as BCG Capital, CFLD, GS
E&C, M.I.K Group, Novaland, Son Kim Land, Sunshine Group and Vinhomes (of
Vingroup).

Following the completion of the transaction,
APAC Realty will continue working closely with Mr. Tuan Pham and his team to expand
the business across the country.

Vietnam's Attractive Real Estate Market

Vietnam
is Southeast Asia's third most populous country with a population of 96 million
in 2019. Over a five-year period, from 2014 and 2019, Vietnam's middle class
doubled to 33 million people to account for a third of the country's population.
This number is expected to continue to rise to 44 million in 2020 and 95
million in 2030.[3]

This expected growth of Vietnam's middle class is set to increase demand for housing especially in key cities with high-growth economies such as Ho Chi Minh City and Hanoi, which offer better employment opportunities, a higher standard of living, better educational facilities and infrastructure. As at end 2019, the estimated total supply of completed apartments in Ho Chi Minh City and Hanoi was approximately 202,000 units and 224,000 units respectively equating to the rate of 17 apartments per 1,000 people.[4] Given the demand-supply
imbalance, most residential projects launched in the past few years have seen
strong demand and sales.

In FY2019, Vietnam recorded
GDP growth of 7.02% and attracted more than US$38 billion in foreign direct
investment.[5] Supported by continued
growth in domestic consumption, strong increases in export turnover and foreign
investment, Vietnam's GDP is expected to remain robust between 6.7% to 6.8%.[6]

Strategic Expansion Plans Set to Enhance Competitive
Advantage

"The
investment in ERA Vietnam follows a series of well-timed acquisitions over the
past 12 months. We added ERA Indonesia
and ERA Thailand to our portfolio in February 2019 and ERA Malaysia at the end
of last year. Our acquisitions are of strategic importance as they will allow
the Group to build a business that is underpinned by stability through
geographic and income diversification. We now enjoy access to some of the
highest growth real estate markets in Asia which continue to be supported by
urbanization and a booming middle class," said Mr. Chua.

In
the first of many steps, APAC Realty has provided additional revenue growth
opportunities for both ERA Indonesia and ERA Thailand. Leveraging on ERA
Singapore's project marketing expertise, training programmes and long track
record of success, both ERA Indonesia and ERA Thailand have better access to
the new homes market and are better equipped to engage leading local developers
for project marketing mandates. APAC Realty has also deployed integration
taskforces to carefully design integration programmes to realise synergies and
economies of scale over the longer-term.

With
the recent acquisition of ERA Malaysia, the Group is currently planning to
expand its presence across the country. Currently with only one office in
Penang, APAC Realty expects to take a strong position in several key cities,
allowing the Group to grow its market share and participate in the growth of
Malaysia's property market. The first phase of this expansion plan will see ERA
Malaysia opening offices in Johor Bahru and Kuala Lumpur by end June 2020.

APAC
Realty has one of the largest real estate networks in Asia with more than
17,300 salespersons in 651 offices across 10 countries through the Group's
offices and ERA franchisees.